Acquisition will bring the two largest video commerce retailers in the U.S. under one roof.
NORTH AMERICA- Liberty Interactive, owner of QVC and e-commerce outlet Zulily, has acquired the remaining stake in HSN, Inc., taking full ownership of the multi-channel retailer.
“Joining the QVC Group will give us instant access to global consumer markets, a leadership team with deep expertise and a global perspective, and the opportunity to further strengthen our content-based brand portfolios in a changing retail landscape,” says Arthur C. Martinez, chairman of the Board of Directors, HSNi. “We have both been innovators in a growing and dynamic retail environment with a unique vision of what shopping should be, and as new technologies continue to change our everyday lives, together we can develop the next generation of shopping for the next generation of consumers.”
Liberty Interactive currently owns 38.2 percent of HSNi, which includes HSN and Cornerstone (owner of home and lifestyle brands including Ballard Designs, Frontgate and Garnet Hill). The acquisition agreement announced Thursday will see Liberty acquire the remaining 61.8 of HSNi, making it a wholly owned subsidiary, in an all-stock transaction valued at $2.6 billion (based on stock prices at closing on July 5).
The acquisition is expected to be completed by the fourth quarter.
Liberty believes that in bringing together the two largest multi-channel, TV-based retailers in the U.S. it will increase its ability to scale, as well as further develop digital retail solutions such as e-commerce and mobile.
“We’re thrilled to welcome the HSNi team to our company. HSNi founded the industry 40 years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers. By creating the leader in discovery-based shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth,” says Mike George, president and CEO, QVC. “As the prominent global video commerce retailer and North America’s third largest mobile and e-commerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”
“We are excited to announce the acquisition of HSNi. The addition of HSN will enhance QVC’s position as the leading global video e-commerce retailer. Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT platforms,” says Greg Maffei, president and CEO, Liberty Interactive. “The value of the combined QVC, HSNi and Zulily will be further highlighted when later this year QVC Group becomes an asset-backed stock as part of the previously announced split-off of Liberty Ventures.”
Liberty Interactive is currently comprised of two stock groups: the QVC Group (NASDAQ: QVCA, QVCB), which includes QVC, Zulily and the stake in HSNi; and Liberty Ventures Group, which includes all other businesses and assets of the company. Liberty Ventures is currently being spun-off into a separate entity, at which point Liberty Interactive will be formally renamed The QVC Group, a re-organization that is also expected to be final by year-end.